Integrated Power Services Inc., a platform portfolio company of The Riverside Co., has made two acquisitions: Trico WCWind Inc., a Litchfield, Minn.-based repairer of wind turbines and generators; and The Monarch Group, a Cleveland-based electric motor repair company. No financial terms were disclosed. GE Capital served as agent for the senior debt financing, with funding provided by KeyBank, CIT and Babson Capital (which also provided the subordinated notes).
Pushing forward on all cylinders since acquiring Integrated Power Services in June 2007, The Riverside Company has invested in the second and third add-ons for the IPS platform – TRICO TCWIND, Inc. and The Monarch Group. Along with Electro-Mec, an add-on acquired in February of this year, these investments propel IPS, a supplier of high quality repair services for electric motors, toward its aggressive expansion goals. Riverside itself has been on a power surge, having acquired 23 companies thus far in 2008.
“Riverside worked with IPS management to identify the right strategic partners to merge with IPS,” said Tim Gosline, Riverside Partner. “The add-ons will drive revenue by expanding IPS’ offering of products and services and penetrating new markets and geographies. Both TRICO and Monarch have strong leadership positions in the Midwest, which make them ideal strategic matches for IPS. Combining these companies produces an entity with flagship service centers, motor repair expertise across a broad spectrum of sizes and particular expertise in several attractive industry verticals.”
IPS serves customers in the utility, petrochemical, mining, metals, and pulp and paper product industries. Monarch supplements IPS’ motor repair services and field service offerings, particularly for large motors, while adding capabilities in coil manufacturing and new and remanufactured motor sales to industrial customers. IPS is headquartered in Greenville, South Carolina and operates 12 service centers across the U.S. The acquisition of Monarch’s Cleveland- and Detroit-based service centers provides IPS with complete coverage in the major steel-producing region in North America.
TRICO is one of the leading specialists in repair services for wind turbines and generators. From its home base in Litchfield, Minnesota and a business office in Spokane, Washington, TRICO offers its services in four of the top seven wind power-producing states. When combined with IPS locations, the company has coverage in the top eight wind power-producing states, which collectively house 78% of the total U.S. installed capacity for wind turbines.
“Both Monarch and TRICO are very well-respected in their industries,” said Brian Brehmer, President and Chief Executive Officer of IPS. “Both acquisitions provide incredible geographic growth for IPS and we look forward to leveraging the strong customer relationships each has developed across our entire organization. They also provide great expansion opportunities as we are delighted with Monarch’s in-house coil manufacturing ability and strength in the power generation and steel industries, and attracted to the wind generator service capabilities that TRICO brings. We look forward to continuing to work with Riverside to take advantage of all synergies within the group.”
Working with Gosline on these transactions for Riverside were Sarah Roth, Vice President; Trey Vincent, Vice President; and Karl Rodger, Analyst. Both companies were sourced by principals in Riverside’s North American Origination Team – Jim Butterfield sourced TRICO and Scott Gilbertson sourced The Monarch Group. Equity for both was provided by Riverside Capital Appreciation Fund 2003 (“RCAF ‘03”). The Monarch Group was advised by Bruml Capital, and TRICO was advised by Franklin Partners. GE Capital served as agent for the senior debt financing, with funding provided by KeyBank, CIT, Babson Capital. Babson Capital also provided the subordinated debt financing for the transaction.
The Riverside Company (www.riversidecompany.com or www.riversideeurope.com)
The Riverside Company is the largest global private equity firm focused on the smaller end of the middle market (“SEMM”) and is one of the industry’s most experienced leveraged buyout investors. Riverside specializes in investing in premier SEMM companies (those valued up to $150 million) and partners with strong management teams to build companies through acquisitions and value-added growth. Since 1988, the firm has invested in 199 transactions with a total enterprise value of $4.4 billion. Its current portfolio in North America, Europe and Asia numbers 66, with combined annual sales of $3.2 billion, EBITDA of $517 million and more than 14,000 employees. Riverside offers the resources to complete acquisitions smoothly and in as little as 45 days – thanks to its sizeable pool of capital under management (more than $2 billion in nine funds), over 180 professionals in 18 offices (Atlanta, Brussels, Budapest, Chicago, Cleveland, Dallas, Eindhoven, Hong Kong, Los Angeles, Madrid, Munich, New York, Prague, San Francisco, Seoul, Stockholm, Tokyo and Warsaw), and long-standing relationships with partner lenders. Six of nine of the firm’s mature vintages are currently top quartile, and the firm’s investors include the world’s leading pension funds, endowments, funds-of-funds, insurance companies and banks.
Integrated Power Services (www.integratedps.com)
Integrated Power Services offers customers the most timely, high quality motor repair services in the industry. It serves a broad set of growing industries and has built its reputation on a unique “one stop shop” approach offering an array of services from baseline repair to diagnostics and consulting. The company’s long standing customer base gives testament to IPS’ high quality and ability to meet the highest repair standards. Through its 12 locations across the U.S., IPS is committed to superior service and reliability.
Monarch, Inc. (www.monarch-electric.com)
For more than 50 years, Monarch, Inc. has provided motor and repair services, field services, coil manufacturing and new and remanufactured motor sales to industrial customers in the largest steel region in North America. A well-respected name in the industry, Monarch, Inc. has built its reputation on service and reliability.
TRICO TCWIND, Inc. (www.tricotcwind.com)
TRICO provides in-house and on-site repair of wind generators, electric motors, generators and other pieces of rotating equipment. The machine shop, mechanical and rewind departments are fully equipped to handle all customers’ needs and field service is available to keep equipment in top running condition and wind turbines operating at peak efficiency.